28 May 2025

Government simplifies planning processes to maximise the potential of smaller sites and smaller housebuilders

In a second announcement this week, the Ministry of Housing Communities and Local Government has unveiled plans to simplify planning and Biodiversity Net Gain rules for smaller sites, and modernise planning committees. The changes are designed to benefit smaller housebuilders to enable more homes to be built faster on smaller sites. 

The proposals include:

  • Faster decisions for small sites: Minor developments of up to nine homes will benefit from streamlined planning and eased Biodiversity Net Gain (BNG) requirements, with faster decisions being taken by expert planning officers, not planning committees;
  • A new ‘medium site’ category: Sites between ten to 49 homes will face simpler rules and fewer costs – including a proposed exemption from the Building Safety Levy and simplified BNG rules, making it easier to deliver biodiverse habitats on these sites, delivering a win-win for nature and development;
  • More land and financing options for SMEs: Homes England will release more of its land exclusively to SMEs, and a new National Housing Delivery Fund to be confirmed at the spending review will support long-term finance options, such as revolving credit facilities and lending alliances.  
  • A new pilot to unlock small sites for SMEs: the Small Sites Aggregator pilot in Bristol, Sheffield and the London Borough of Lewisham will unlock sites that would otherwise not have been developed, while attracting private investment to build new social rent homes. Building on a model developed by Lloyds Banking Group’s Social Housing Initiative, the Small Sites Aggregator will help tackle the housing shortage, address unviable small plots of land, and create local jobs supporting the government’s Plan for Change. 

The announcement builds on the government’s planning overhaul to date, with the new National Planning Policy Framework expected to drive housebuilding to its highest level in over 40 years.

Rachael Williamson, director of policy, communication and external affairs commented on the news, saying: 

"We welcome [today’s] announcement as an important step toward unlocking the potential of smaller housebuilders to help tackle the housing crisis. Local builders are often rooted in their communities and well-placed to deliver high-quality homes on small and challenging sites. Reducing red tape, providing better access to land and finance, and streamlining planning processes will empower SMEs to contribute more to meeting housing need, creating jobs, and revitalising local economies. We’re particularly pleased to see targeted support for brownfield development and social rent delivery through the Small Sites Aggregator pilot, which aligns with CIH’s call for diverse, sustainable, and affordable housing supply."

You read the full announcement from the Ministry of Housing ,Communities and Local Government in this link.